Nutritreat Industries Corp. is a manufacturer of food products. The company introduced
chocolate cookies to the local market. After a period of initial success, the product lost
its market and Nutritreat decided to withdraw chocolate cookies from the market. This
scenario is an example of the _____ stage of a product life cycle.
a. introduction
b. growth
c. maturity
d. decline
Answer:
Which of the following statements is true of advertising?
a. The total costs of advertising are typically low.
b. The messages in advertising are personalized.
c. The cost per contact in advertising is low.
d. Innovative media are not used in advertising.
Answer:
Services and ideas are not considered products because they are intangible.
a. True
b. False
Answer:
Which of the following statements is true about code of ethics?
a. It is most effective when it is too detailed.
b. It can be an effective internal control of behavior.
c. It is typically drafted by government agencies.
d. It is created only for top managers of an organization.
Answer:
Wild Plus, a television channel dedicated to wildlife, organizes promotional events in
several shopping malls across the city to promote its new wildlife adventure series.
Articles about the new program are also published in local newspapers. Therefore, Wild
Plus is engaged in:
a. promoting sales.
b. generating publicity.
c. personal selling.
d. implicit communications.
Answer:
Serena wants to buy a pair of sunglasses. She decides to buy it from Seekart, an online
retail store. Seekart uses an automated system to process its customers’ purchases and
sends the information to the manufacturer’s warehouse, which directly ships the
required products to the customers. This system employed by Seekart is called a(n)
_____.
a. job shop
b. assembly line
c. materials management system
d. order processing system
Answer:
Indigo Blue Inc. is a distributor of equipment, component parts, and supplies in the
United States. It has an ownership title to all its products.These products are stocked in
both national and regional warehouses to guarantee product availability and quick
service to the many manufacturers who are its customers. Based on this information,
Indigo Blue Inc. is an example of a(n) _____.
a. agent
b. merchant wholesaler
c. retailer
d. government buyer
Answer:
Which of the following statements is true of strategic business units (SBUs)?
a. Each SBU of a company typically has its own return on investment.
b. All SBUs of a company share the same goals and use the same strategies.
c. All SBUs of a company target the same market segment.
d. SBUs do not perform manufacturing functions.
Answer:
Which of the following is closely associated with the diversification strategy?
a. Entering new markets with little competition
b. Increasing overhead production costs
c. Decreasing the prices of existing products
d. Selling modified products to the same customers
Answer:
Psychological influences on consumer buying decisions can be affected by a person’s
environment because they are applied on specific occasions.
a. True
b. False
Answer:
For customized services, such as construction services, customers lack the ability to
negotiate a price.
a. True
b. False
Answer:
Market segments cannot be differentiated by demographic characteristics.
a. True
b. False
Answer:
In the context of determinants of civil society, _____ involves the voluntary acceptance
of standards established by nongovernmental entities.
a. self-regulation
b. opportunism
c. self-dealing
d. socialization
Answer:
By pressurizing a supplier to sell products at very low prices, a buyer may, in effect,
force the supplier to stop selling to him or her.
a. True
b. False
Answer:
Before estimating how much profit and how much market share can be earned at each
possible price of a product, a company is most likely to:
a. choose the Return on Investment (ROI) target.
b. determine the corresponding costs for each price.
c. estimate industry supply.
d. implement pricing segmentation.
Answer:
_____ are inventories displayed for sale to customers.
a. Back stock
b. Floor stock
c. Intangible assets
d. Tangible assets
Answer:
The research design for solving a particular problem contains instructions on how the
results of the marketing research should be implemented and verified for effectiveness.
a. True
b. False
Answer:
Alpha Beta Inc. is a self-service shop that offers a wide variety of foods and household
products, organized into aisles. Alpha Beta is a _____.
a. supermarket
b. drugstore
c. warehouse club
d. factory outlet
Answer:
New products and services are mostly the sole responsibility of a single firm in the
supply chain.
a. True
b. False
Answer:
A company is said to be a direct foreign investor in another country if it:
a. outsources a part of its production to the country due to the availability of cheaper
labor.
b. exports finished products to that country.
c. manufactures products for that country based on contract manufacturing.
d. acquires an active ownership of marketing facilities in that country.
Answer:
_____ is the element in the promotional mix that evaluates people’s attitudes, identifies
issues that may elicit their concern, and executes programs to gain their understanding
and acceptance.
a. Personal selling
b. Advertising
c. Sales promotion
d. Public relations
Answer:
A series of related advertisements focusing on a common theme, slogan, and set of
advertising appeals is referred to as a(n):
a. advertising campaign.
b. advertising objective.
c. media schedule.
d. infomercial.
Answer:
A diversification strategy can be risky when a firm is entering unfamiliar markets.
a. True
b. False
Answer:
Which of the following is a difference between direct retailing and direct marketing?
a. Direct retailing shoppers are less bound by traditional shopping situations, while
direct marketing shoppers are bound by traditional shopping situations.
b. Direct retailing employs inbound telephone contacts to sell directly to consumers,
while direct marketing employs outbound telephone contacts to sell to consumers.
c. Direct retailing allows customers to shop over the Internet, while direct marketing
does not allow customers to shop over the Internet.
d. Direct retailing representatives sell products door-to-door, while direct marketing
allows consumers to shop from home.
Answer:
The final step in creating a marketing mix is developing a thorough understanding of
the global target market.
a. True
b. False
Answer:
_____ labeling is designed to help consumers make proper product selections and lower
their cognitive dissonance after the purchase.
a. Informational
b. Persuasive
c. Perspective
d. Instructional
Answer:
Ecstasy Inc. is a Canada-based food and beverage company. The company has decided
to market and sell its products in all European countries under the same brand name. In
this scenario, Ecstasy Inc. has decided to use the _____.
a. complimentary branding strategy
b. co-branding strategy
c. one-brand-name strategy
d. individual branding strategy
Answer:
Martha visits a departmental store and learns that a box of exotic candles would cost her
ten percent more than what she had paid for it six months ago. In this scenario, Martha
has to pay more as a result of _____.
a. inflation
b. recession
c. stagnation
d. stagflation
Answer:
Prices always steadily decline for a product in the decline stage of the product life
cycle.
a. True
b. False
Answer:
Which of the following actions is performed during the final stage of an effective social
media plan?
a. Setting objectives that can be specifically accomplished through social media
b. Examining trends and best practices in the industry
c. Listening to customers and understanding their expectations
d. Making changes to a newly implemented campaign based on consumer response
Answer:
Khokho’s Coffee House is the first to introduce flavored coffee in the global market. It
sells coffee in several different flavors, such as blueberry, cinnamon, and cranberry,
based on the popular flavors in each country. Based on this information, Khokho’s
Coffee House uses _____ to market its products.
a. product invention
b. promotion adaptation
c. global marketing standardization
d. product adaptation
Answer:
Kay & Maggie’s, a beauty salon, is conducting a survey to find out how satisfied its
customers are with the service provided at all its outlets. For this purpose, it distributes
questionnaires and conducts personal interviews with its customers. Which form of data
is being collected by Kay & Maggie’s?
a. Primary
b. Ordinal
c. Secondary
d. Nominal
Answer:
An advertisement in a trade magazine targeted toward veterinarians urges them to
prescribe the drug Hepato for cats and dogs with damaged livers. This advertisement
was placed by the product’s manufacturer. This advertisement is an example of how
manufacturers use a(n)__________strategy.
Answer:
How does outsourcing affect the efficient deployment of supply chain management?
Answer:
__________is the set of values, norms, attitudes, and other meaningful symbols that
shape human behavior and is transmitted from one generation to the next.
Answer:
Tipplers Delight is a liquor store that sells a wide assortment of alcoholic beverages.
Tipplers Delight is an example of a__________.
Answer:
Retailers play a role in making distribution simpler by reducing the number of
transactions required by consumers to make a purchase and by making an assortment of
goods available in one location. This is called__________.
Answer:
Members of a family who suggest or plant the seed for the purchase process are
called__________.
Answer:
Univ Airlines and Mirago Airlines are two competing airlines. They make an agreement
to charge customers a certain price for airfreight. This leads to the filing of several
lawsuits against them by other airlines. In this scenario, the two firms most likely
indulged in__________.
Answer:
MaxNutri sells cookies and nutrition bars. The marketers at MaxNutri are trying to
come up with a new and attractive packaging design for its cookies. In this scenario,
MaxNutri is working on its__________strategy.
Answer:
__________reflects inventory that is being assembled or manufactured from its raw
state into finished goods for sales.
Answer:
Car Bar allows its customer to rent a car at $10 per day on weekdays, at $15 per day on
weekends, and at $20 per day exclusively during the holiday season. This pricing
strategy helps the company match the supply and demand for its cars. This is an
example of__________.
Answer:
How do value-based pricing, unbundling, and bundling help marketers hold market
share during a recession period?
Answer:
__________is a thorough, systematic, periodic evaluation of the objectives, strategies,
structure, and performance of the marketing organization.
Answer:
__________is a type of co-branding that occurs when two brands receiving equal
treatment borrow from each other’s brand equity.
Answer:
The quantity of a product that people will buy is most likely to decrease as the
product’s__________increases.
Answer:
TomSauce, a brand of tomato sauce, advertises that the tomatoes it uses are processed
within 24 hours of being picked to ensure product freshness. In this scenario, the fresh
tomatoes are examples of__________.
Answer:
Daily Fresh is a multinational food and beverage company. One of the new products
that Dairy Rich intends to introduce includes fiber added to chocolate. The packages
will include data that each chocolate bar contains five grams of fiber and the various
health benefits of including more fiber in one’s diet. In this case, Daily Fresh intends to
use__________.
Answer:
Becky wants to buy a new cell phone. She asks her tech-savvy friends to recommend a
good phone that is light in weight and easy to use. In this scenario, Becky is obtaining
information using a(n)__________information source.
Answer: